Applications and Use Cases of Blockchain Beyond ICO

Since the invention of first Cryptocurrency, Bitcoin, in 2009, history's first permanent, decentralized, global, trustless ledger of records, entrepreneurs in industries around the world have come to understand the implications of development in blockchain space.

The nature of blockchain technology has got imaginations running wild after the success of Bitcoin, as many other people saw an opportunity to launch their own Cryptocurrencies.

This has prompted the ICO boom. Startups have discovered a simpler method to fund-raise for their projects from the public through ICOs and eliminating the complicated venture capital funding model.

In the past year the majority of crypto enthusiasts had made ICO hype. Anyway, beyond ICO, there are other fascinating aspects that contribute in blockchain revolution. Blockchain technology can be implemented in various industries disrupting them to the core specifically enterprise software. It’s true that not all scenarios may require blockchain but the significant majority can be made more efficient through the adoption of blockchain technology.

Let’s dive in deep how development in blockchain technology can be useful in every industry.

As a system of record

Digital identity

Cryptographic keys in the hands of people take into consideration new ownership rights and a premise to shape fascinating digital connections. As we've talked about in our guides "What is Blockchain Technology?", "How Does BlockchainTechnology Work?" and "What Can a Blockchain Do?" blockchain give a chance to build up a solid system for digital identity.

Since it did not depend on accounts and authorizations related with accounts, since it is a push transaction, and in light of the fact that ownership of private keys is ownership of the digital asset, this places another and secure approach to oversee identity in the digital world that abstains from presenting users to sharing excessively vulnerable personal information.

Tokenization

For the reasons for authenticating a unique physical thing, the things are paired with a corresponding digital token. This basically implies tokens are utilized as to bind the physical and digital worlds. These digital tokens are valuable for supply chain management, intellectual property, and anti-counterfeiting and fraud detection.

Inter-organizational data management

Blockchain technology entitles as a revolution in how information is assembled and gathered. It is less about keeping up a database, more about dealing with a system of record.

For governments:

Governments have an enthusiasm for each of the aspects segments of blockchain technology.

Initially, there's the ownership rights encompassing cryptographic key ownership, revocation, generation, replacement, or loss.

They likewise have an enthusiasm for who can go about as a part of a blockchain network.

Furthermore, they have an enthusiasm for blockchain protocols as they approve transactions, as governments regularly manage transaction authorization through compliance regimes (e.g. stock market regulators authorize the format of market exchange trades).

Consequently, regulatory compliance is viewed as a business opportunity by numerous blockchain developers.

For financial institutions:

Blockchain lends itself to some of the common use cases including regulatory compliance, settlements, cross-border payments, custody, asset tracking, trade finance and post-transaction settlements within the financial sector.

Many financial organizations have already initiated projects based on blockchain technology for payments and securities trading and spending on blockchain technology to transform existing cumbersome and inefficient processes such as cross-border payments, provenance, and post-transaction settlements. These are crucial pain points for many financial services organizations, and thus blockchain offers an attractive value proposition.

For audit trails:

Utilizing the client server infrastructure, banks and other huge institutions that assist people form digital connections over the web are compelled to secure the account information they hang on users against hackers.

While banks can spend the billions of dollars to keep information secure, the system is presently asking that organizations do likewise. We are sharing same information with these organizations from we are with the banks, after all things considered. However, organizations are under attack and have been hacked, exposing customers’ intimate financial details sometimes.

Blockchain technology offers a way to automatically make a record of who has access to information or records, and to set controls on authorizations required to see information.

This additionally has imperative ramifications for wellbeing records.

As a platform

For smart contracting

Blockchains are the place digital connections are being framed and secured

Consortium of the biggest banks on the planet, and in addition a few insurance agencies, driven by a startup, are trying to create a platform to set up new digital connections between banks themselves. Their way to deal with securing these new digital connections is a mix of Ricardian contracts and coded business logic.

To put it plainly, this version of smart contracts tries to utilize information and records stored in blockchains to help complex legal agreements.

Different new startups are chipping away at side chains – bespoke blockchains connected to larger public blockchains. These 'federated blockchains' can defeat issues like the block size debate plaguing bitcoin. It is figured these groups will have the capacity to make blockchains that authorize super-specific types of transactions.

Ethereum takes the platform idea further. Another kind of smart contracting was first presented in Vitalik Buterin's white paper, "A Next Generation Smart Contract and Decentralized Application Platform". This vision is tied in with applying business logic on a blockchain, so transactions of any unpredictability can be coded, at that point authorized (or denied) by the network running the code.

In that capacity, ethereum's basic role is to be a platform for smart contract code, involving programs controlling blockchain assets, executed by a blockchain protocol, and for this situation running on the ethereum network.

For automated governance

Bitcoin itself is a case of automated governance, or a DAO (decentralized autonomous organization). It, and different undertakings, remains experiments in governance, and much research is missing regarding this subject.

For markets

Another approach to consider Cryptocurrency is as a digital bearer bond.

This basically implies building up a digitally unique identity for keys to control code that can express specific ownership rights (e.g. it may be owned or can own other things). These tokens imply that ownership of code can come to speak to a stock, a physical thing or some other asset.

Standards on how these instruments can be transacted can be coded by a blockchain protocol.

For streamlining of clearing and settlement

In the realm of stock trading, we regularly hear the term 'T+3'. This implies, a trade (T) is trailed by three days before the trade is acknowledged (settled). There are non-blockchain approaches to get this number down, however not without trading off security and risk.

With blockchain innovation, notwithstanding, trade is settlement, and we have a T+0 equation.

For automating regulatory compliance

Past simply being a trusted repository of data, blockchain innovation could empower regulatory compliance in code form – as it were, the manner by which blocks are made substantial could be a interpretation of government legal prose into digital code.

On account of banks, for instance, this could mean enhancing efficiency in anti-money laundering (AML) compliance. Blockchain technology can be adjusted to do distinctive things – allow transactions or report transactions of a specific sort as indicated by exact rules.

This implies banks could automate regulatory reporting or transaction authorization.

Conclusion

While blockchain is still relatively new and numerous experiments will flop before they succeed, the possible outcomes for innovation are endless. Along with points listed above, Blockchain, undoubtedly is going to come up with a future where distributed, autonomous solutions will have a huge role -- both in our personal lives and in business. Visit: https://aeries.io